As a business owner, your first priority is most likely the success of your business and growing your profits. After all, without a healthy bottom line, you probably won’t have a business for very long.
However, if your business is on solid footing, it’s also a good idea to make charitable giving part of your operational plan. There are number of benefits to doing so, not the least of which are the tax breaks a business can receive from giving back. A business with a track record of philanthropic activity often enjoys a better public perception, as customers want to do business with a company that shares their values. Internally, employees feel better about working for a company that supports charitable causes, and companies that give back often attract quality employees.
Even if you know that there are plenty of good reasons to add a charitable giving component to your business plan, you may be struggling with the best way to go about it. Here are a few ideas to get the ball rolling.
Sponsorships
Many organizations actively seek sponsorships, for either one-time event or through ongoing relationship. Sponsorships can include everything from donation of cash, to gifts of services or goods to help support an organization’s mission.
The major benefit of sponsorships is that it often serves as a marketing tactic. When your business’ name is printed on the local recreational baseball league’s jerseys or on the back of a commemorative T-shirt, you build awareness and brand recognition.
Pro Bono Services and Gifts
If your business offers a service, providing them free to qualified individuals can boost your philanthropic profile. For example, a hair salon might offer free makeovers to underprivileged job seekers or cancer patients, or an accounting firm could provide free tax prep to low-income single parents.
Consider collaborating with a local charity to identify opportunities where you can serve and use your talents for the benefit of others. While you cannot deduct the value of the time you spend volunteering come tax season, you may be able to deduct some costs associated with your services.
Special Events
Small businesses can serve as the point of contact for an overall fundraising or donation drive. We have all seen food drives at grocery stores around the holidays. Schedule an event that encourages customers to visit your business and give back.
For example, a marine supply shop could host a boat donation drive, and partner with an organization that uses the proceeds from selling donated watercraft to support charitable causes. You can also host a blood drive, a clothing drive or some other type of collection to support a cause. Not only do they help a worthy organization, but you also get customers through the door and get publicity for your company.
Employee Volunteering
Not all philanthropic activities involve giving money and goods. Time is also a valuable commodity, and businesses can gain a lot of goodwill — and keep employees satisfied — by allowing employees time to volunteer.
Whether you arrange a company-wide day of service, in which all employees pitch in to help an organization or complete a specific project, or allow employees to take time off to volunteer during normal working hours, when you make community service a part of doing business, you build goodwill and a more positive reputation for your company.
Matching Gifts
Many midsize and larger organizations have formal giving programs in which employees are encouraged to donate to specific organizations, and the company will match some or all of the gifts. Some companies even offer payroll deductions to make charitable giving even easier.
Small businesses can also offer matching gifts. Encourage employees to choose an organization that they wish to support and offer to match their cash donations dollar for dollar, or contribute a certain dollar amount if they reach a particular fundraising threshold. Some companies also offer employees incentive for donating. For example, employees may be allowed to dress casually on specified days if they donate to the designated cause.
Research shows that consumers look favorably upon companies that support charitable causes — and that they want to know which charities businesses support. Don’t be shy about sharing your commitment to helping others and to supporting the causes that are close to your heart. Not only will you be making a positive impact on society, you’ll be making a positive impact on your business’s bottom line.
